HI HB1554

Establishes separate liquor tax rates for beer manufactured in Hawaii versus beer manufactured outside the State, effective July 1, 2011.

Reduces tax on beer manufactured in Hawaii to $0.35 per wine gallon for non-draft beer and $0.20 per wine gallon for draft beer.

Maintains existing tax rates of $0.93 per wine gallon for non-draft beer and $0.54 per wine gallon for draft beer manufactured outside the State.

Aims to promote the local craft brewery industry by providing tax relief approximately 61% lower than the prior rate, aligning with federal liquor tax provisions for small breweries.

Addresses the decline in Hawaii's small brewery industry caused by high manufacturing costs from importing ingredients and materials to the State.